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Loan Against Property

  • Loan up to ₹7.5 Cr
  • Quick Sanctioning
  • Maximum Funding on Property Value
Apply Now

Apply for Loan Against Property - Get a Loan Amount up to ₹7.5 Crore

A loan against property (LAP) is another form of secured loan. Self-employed and business owners can avail of this loan after mortgaging their property as collateral. It comes with a lower interest rate because the sanctioned amount is determined based on the valuation of the property. As the collateral is commercial or residential property, customers can obtain a large amount as compared to other loan forms.

LAP helps businesses to expand. It helps you to maintain ownership of your property without having to worry about meeting your financial obligations.

Calculate Your Monthly EMI for Loan Against Property

It is a customised online tool that allows applicants to calculate their monthly loan against property instalment in advance. It helps customers to plan their finances effectively. The calculator uses three variables that are the loan amount, repayment tenure, and rate of interest for computing EMI. All you have to do is, input the variables and get the desired result.


Loan Detail

Select Loan Amount

Min ₹ 20,00,000

Max ₹ 75,000,000

Interest Rate

12 %

Min 11%

Max 17%

Select Loan Repay Duration

10 Years

Min 3 Years

Max 15 Years

Your Estimated EMI

₹ 4477

Features and Benefits for Loan Against Property Loan

Mortgage loan amount:

The amount you receive can be anywhere between INR 20 lac and INR 7.5 crore, depending on the market value of your property and other eligibility factors.

LTV Ratio:

The Loan-to-Value (LTV) Ratio can reach up to 75% of your property's value, providing you with sufficient funds to achieve your objectives and allowing you to secure a larger loan amount based on your property's worth.

Flexible Tenure:

The LAP repayment tenure can go up to 15 years. Thus, it helps borrowers to pay off their EMIs without any hassle.

Low-Interest Rate:

Take advantage of competitive interest rates offered by Hero Fincorp's Property Loan, guaranteeing affordability and efficient cost-effective financing.

Hassle-free Documentation:

Simplify the loan application process with Hero Fincorp's Property Loan, as we ensure hassle-free documentation for your convenience.

Easy Repayment & Longer Tenure:

Benefit from adaptable repayment alternatives and an elongated loan duration through Hero Fincorp's Property Loan, ensuring ease in handling your financial matters.

Loan Against Property Eligibility Criteria

Applicants planning to avail of a loan against property need to fulfil certain eligibility criteria as detailed below.

Age Criteria

Age

An Indian national with a minimum age of 25 years and maximum age of 75 years.

Proof of Income

Citizenship

Verify your Indian citizenship status to fulfil the criteria for the instant mortgage loan.

Total Employment

Employment Status

If you meet the requirements for an immediate mortgage loan. For the loan to be authorized, your company must have operated for at least three years.

Minimum Income

Business Status

Applicants should be in the business for at least 3 years.

KYC Documents

Maximum Loan Tenure

The loan is available for a flexible tenure of 15 years.

Photograph

Occupation Status

You must run a successful firm. People in the salaried class are ineligible for our mortgage loan.

Note: We do not provide Loan Against Property to salaried individuals.

Documents Required For Loan Against Property

Before applying for a loan against property, applicants must have the following documentation on hand.

Documents Required For Loan Against Property

Mandatory
Documents
Duly filled application form, PAN Card
Proof of Identity Aadhar Card, ID Card, Driver's License, and Identity Card issued by GOI
Proof of Address Passport, Driver's License, Utility Bill, Voter ID Card, Lease/ Rent Agreement, Registry Copy, Property Tax Receipt, GST Certificate
Proof of Business Existence GST Certificate, UDHYAM Certificate, Partnership Deed Copy, Trade License, Certificate of Practice
Signature Proof Banker's Verification, Passport, PAN Card
Proof of Income Last three years' Income Tax Returns (ITRs), Income Statement, Profit and loss Statement Balance Sheet, Bank Account Statement (previous six months)
Property Related Documents Complete set of documents pertaining to the property in question

Loan Against Property Interest Rate Fees & Charges

Here are the interest rates and fees for a loan against a property with an interest rate starting at 11% per annum.

Fees & Charges Amount Chargeable
Interest Rate Starting from 11% P.A.
Loan Amount ₹20 Lakh to ₹ 7.5 Cr
Loan Processing Charges Minimum Processing fee is 1%+ GST
Foreclosure Charges Pre-Payment is not allowed within 12 months of loan sanction After 12 months, pre-payment charges will be applicable as described in the sanction letter

Please note that these rates are indicative and subject to change. The processing fee and prepayment charges may also vary depending on the lender and the loan terms. It's best to check with the lender directly for the most up-to-date information.

How does Loan Against Property (LAP) Interest Rate Work?

Hero FinCorp provides customers with an option to choose between fixed interest rate and floating interest rate. The interest rate has a direct impact on your EMI amount and repayment tenure.

  • Fixed Interest Rate - It means you pay the same interest rate throughout your loan repayment tenure. Here, the EMI remains the same during the whole loan tenure.
  • Floating Interest Rate - This type of interest rate fluctuates in response to market conditions. As the interest rate fluctuates, the EMI also keeps on changing. We calculate the interest rate using a base rate or index rate set by RBI. Therefore, when the base rate increases, the floating rate also increases and vice versa.

Charges Associated with Loan Against Property

  • Processing Fees - This fee is charged to cover the cost incurred during the processing of your loan.
  • Legal/Technical Fees - Before providing any funds, we assess the property valuation and the risk involved in the property by collecting all the legal documentation and by physically verifying the property and documents. To initiate this process, you may be charged with the legal fee.
  • Pre-Payment and Foreclosure Charges

    (a) These depend on the type of the interest rate—whether it is floating or fixed interest rate.

    (b) There are predefined charges for prepayment and foreclosure of the loan. Read the loan agreement carefully before applying for a LAP.

How to Apply for a Hero FinCorp Loan Against Property

  • 1

    First, check if you satisfy our loan against property eligibility criteria, based on your age, age of business, and by going through our FAQs.

  • 2

    Then get all the necessary documents like KYC papers, property papers, income proofs like financial statements and ITRs, and company constitution and registration proofs in place.

  • 3

    Use the loan against property EMI calculator on our website to figure out what works best for you.

  • 4

    Fill up the LAP loan application form on our website, by providing details like your name, email ID, mobile number, property location, your city and state, annual turnover, and the loan amount you need. Then hit on Apply Now.

  • 5

    You can also call our customer care on 1800-103-5271, Monday to Friday, between 10 AM and 6 PM. Or, email to Corporate.Care@HeroFinCorp.com.

  • 6

    If you want to take the offline route, just visit your nearest Hero FinCorp branch. If you are an customer, contact your relationship manager.

How to Apply for a Hero FinCorp Loan Against Property

Why Choose Hero FinCorp For Loan Against Property?

What Do Mortgage Lenders Consider?

  • Stable Income - Lenders prefer borrowers with a steady and reliable income. There are fewer chances of getting a loan against the property if you don't have a stable income or if you earn by speculative means.
  • Age Factor - As the borrower’s age increases, earning potential decreases. As such, financial institutions are more likely to lend to young people who are starting a job or business than those who are nearing retirement or have retired.
  • Occupation - Salaried people have a fixed income, unlike businesses or self-employed people, whose earnings fluctuate with market conditions. Considering this risk factor, lenders prefer salaried over non-salaried professionals.
  • Place of Residence - Loans are not available on agricultural property or land that does not have government approval. As a result, the location of your residence and the property you are willing to mortgage is crucial.

How Can Loan Against Property Be Used?

  • Business / commercial purposes -A loan against property in India can help you expand your business, buy machinery or a new plant, maintain cash flow and working capital, or finance a new project.
  • Consolidation of debt - LAP loans can help you consolidate several small but high - priced loans into one bigger loan, which is low-priced and has a higher tenure. Your loan amount will also increase.
  • Lease rent discounting - LRD is the process in which you can use rental receipts from your property as security to get a LAP loan from Hero FinCorp. This way, the money you get as rent will go into paying off the EMIs. Consequently, you will be able to use the loan against commercial property or residential property to buy new properties and get tax deductions.
  • New commercial property - You can use LAP to buy new commercial property, expand your business, earn more revenue and pay off your loan.

When Should You Take A Loan Against Property For Your Business?

  • Maintaining and expanding inventory requires sufficient funding and this expense is unavoidable. It is necessary to provide customers with more options and meet changing demands. A mortgage loan can help.
  • Replacing or repairing old machinery or buying the latest ones requires a lot of money. A loan on property can do the trick and help you handle production or serve customers efficiently. It will also eliminate your risk or liability that comes from using an outdated or faulty equipment.
  • Unsold inventory or late payments from customers can affect your cash flow negatively. Plus, expenses associated with rent, staff and utilities can add to the worry. By taking a LAP loan, you can ensure smooth operations and cover losses.
  • When you want to grow or expand your business, funds should not hold you back. Take a loan against property to hire more employees, buy a new place, advertise, or give your business a new look.

Frequently Asked Questions

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